HP bucks expectations and forecasts stronger full-year profits. Analysts have said that similar to IBM, HP, with its recurring revenue streams from services and printing supplies, is likely to be better insulated from the economic slump than Dell.

Shares of HP, the world's largest-maker of personal computers,
jumped 14 percent in pre-market trading as the news allayed investor
concerns about the impact the economic crisis will have on technology
spending on HP products.

Fears of a sharp slowdown in PC spending had increased after the world's largest chip maker Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) shocked markets with a revenue warning last week.

Analysts have said that HP, with its recurring revenue streams from
services and printing supplies, is likely to be better insulated from
the economic slump than Dell.

"The threat of a consumer pullback is real and present. It's
unlikely that companies large and small can sidestep the structural
weakness on the consumer side," said Ashok Kumar, analyst at Collins
Stewart.

"But those with a broader portfolio -- like Hewlett-Packard and IBM
-- will be able to weather the storm better than the likes of Dell,"
Kumar said.

HP, which is scheduled to report full results on November 24, said
its preliminary net profit in the fiscal fourth quarter ended October
31 was 84 cents per share, or $1.03 excluding items such as
amortization, restructuring, and acquisition-related charges.

Analysts were looking for earnings per share of $1.00, excluding items, according to Reuters Estimates.

Fourth quarter revenue rose 19 percent to $33.6 billion, or an
increase of 16 percent when adjusted for currency effects, compared
with the average analyst estimate of $33.1 billion.

For fiscal 2009, HP expected revenue of $127.5 billion to $130.0
billion, which was below Wall Street's average forecast for $135.2
billion. But the company forecast full-year earnings per share
excluding items of $3.88 to $4.03 per share, which beat the average
Wall Street estimate of $3.86.

"It looks like results were better than what people had feared and
the guidance was better than people had feared," said Calyon Securities
analyst Shebly Seyrafi. "However, I think the risk is that their
forward guidance is too optimistic as PC growth slows down, especially
in notebooks."

He added, "PC visibility is getting worse by the day and what they
are seeing right now may not be true in a couple of months. So although
what they are guiding for fiscal 2009 is positive relative to
consensus, it still may be too high once the final numbers come in."

HP's fiscal first quarter revenue forecast of between $32.0 billion
and $32.5 billion was slightly below the average analyst estimate of
$33.65 billion. It expects earnings of 93 cents and 95 cents per share
excluding items, in line with the average Wall Street estimate of 94
cents.

HP shares rose to $33.54 in pre-market trading, from their previous close of $29.34 on the New York Stock Exchange.